JPMorgan Debanked Polymarket Last Year. Now It’s Keeping the Door Open for an IPO.

JPMorgan Chase terminated its banking relationship with prediction market Polymarket last year over regulatory concerns. But the Wall Street giant has maintained other ties with the fast-growing company, according to a new report.

JPMorgan informed Polymarket in October that it would need to find another bank, the Financial Times exclusively reported last week, citing people familiar with the matter. Polymarket has since moved its banking business to another lender, whose identity was not disclosed.

The decision came at a sensitive moment for Polymarket. At the time, the New York-based prediction platform was prohibited from serving U.S. customers following a 2022 enforcement action by the Commodity Futures Trading Commission, which accused it of operating an unregistered derivatives trading platform.

Under the Trump administration, the CFTC allowed Polymarket to return to the U.S. market last year. However, the regulator still has an ongoing investigation into the company, the FT previously reported.

Despite ending the banking relationship, JPMorgan has not completely distanced itself from Polymarket. The bank invited Polymarket CEO Shayne Coplan to speak at a conference for wealthy private banking clients in Miami in February, where he appeared alongside former NFL star Tom Brady. JPMorgan is also interested in potentially securing an underwriting role if Polymarket eventually pursues an initial public offering.

"They don't want to burn all their bridges," a person close to Polymarket told the FT. JPMorgan declined to comment to the newspaper. Polymarket disputed the idea that the two companies had broadly severed ties, saying it continues to work with JPMorgan in other areas.

Polymarket said it maintains "a close, active relationship with JPMorgan across multiple entities, operational integrations and material handling of customer fund flows," adding that "any suggestion otherwise fundamentally mischaracterises our relationship."

Prediction markets have exploded in popularity, generating more than $250 billion in notional trading volume so far in 2026, according to user-compiled data on crypto analytics platform Dune cited by the FT.

That growth has also brought increased scrutiny. More than a dozen U.S. states have taken legal action against Polymarket and rival Kalshi, alleging that their platforms amount to unlawful sports betting operations. Both companies argue they operate exchanges that match traders taking opposing positions rather than acting as traditional bookmakers.

Concerns have also emerged over whether people with access to confidential information could profit from prediction markets. In April, a U.S. soldier involved in planning the January operation to seize Venezuelan leader Nicolás Maduro was charged with allegedly making Polymarket wagers tied to the mission that generated more than $400,000. The soldier, Gannon Ken Van Dyke, pleaded not guilty.

JPMorgan's decision also lands amid a broader political fight over "debanking," the practice of banks closing or restricting accounts because of regulatory, compliance or other concerns.

The U.S. government is investigating several major banks, including JPMorgan, over whether they provided customers fair access to banking services. President Donald Trump has separately sued JPMorgan and CEO Jamie Dimon, alleging that the bank closed his accounts for political reasons. JPMorgan has said the lawsuit has no merit.